With Tower Health positioned on a path to financial stability and showing significant signs of healing, the Board of Directors has announced an upcoming leadership transition.
P. Sue Perrotty, who has guided the health system’s financial turnaround, is choosing to return to the Tower Health Board of Directors. Her final day as Tower Health Chief Executive Officer (CEO) will be February 23, 2025 – a full-circle moment as the date will mark the fourth anniversary of her tenure.
Michael Stern, FACHE, will be promoted to Tower Health President and CEO, effective February 24, 2025. Stern, who currently serves as Tower Health President and Chief Operating Officer (COO), will oversee the next stage of Tower Health’s progress, including implementing a three-year strategic plan and new Tower Experience initiative.
“We are proud of the clinical care and quality we provide, and we are excited about Tower Health’s future,” Board Chair Meg Mueller said. “We are confident that Michael’s leadership will guide the organization toward continued growth, success, and service to our communities in 2025 and beyond.”
Perrotty assumed the President and CEO role at an extremely difficult time for Tower Health, after several years of substantial losses due to an aggressive expansion and the impacts of COVID. It was meant to be a temporary role, but she generously agreed to remain for a longer time to ensure Tower Health rebuilt a solid foundation. Her banking expertise and her humanistic approach proved to be exactly what was needed to help the organization achieve financial stability, rebuild its leadership team, and restore confidence in the health system.
“I wasn’t expecting to take on this role four years ago, but I’m glad I did,” Perrotty said. “The success we’ve seen is a credit to every staff member who, no matter their job, displays excellence in action and cares for our patients and for each other. While I was tasked with helping to restore financial stability, I am equally proud of how our clinical quality has never wavered, how our employee satisfaction scores increased, and how our hometown hospitals remain the heartbeat of the communities we serve.”
In addition to the Tower Health Board of Directors, Perrotty will remain a member of the Reading Hospital Foundation Board of Directors, St. Christopher’s Hospital for Children Foundation Board of Directors, and St. Christopher’s Hospital for Children Parent Board.
“Sue has led with integrity, compassion, and transparency,” Mueller said. “We thank her for her tremendous impact and steady leadership. We are thrilled that she will continue to support Tower Health through her board service.”
Stern joined Tower Health as Executive Vice President and Chief Operating Officer (COO) in 2022, and he was promoted to President and COO earlier this year. Under his leadership, Tower Health has exceeded many established goals and demonstrated resilience. He embodies the Tower’ Health’s mission, and he has been integral to the organization’s financial turnaround and renewed positive energy.
“I am deeply grateful to the Board for their unwavering support, and I thank Sue for being an incredible partner and mentor,” Stern said. “I am honored to lead this organization of compassionate caregivers and physicians.”
Stern has built strong relationships with the Board, the leadership team, and staff at every level. He will continue to focus on volume growth, workforce stability, workplace culture, leadership integration, and high-quality care that meets the needs of the communities we serve. He also recognizes the importance of genuine engagement and has developed activities designed to foster fun at work and connect employees to Tower’s success, including mantra contests, Spirit Week, and a Shark Tank business idea pitch competition.
“Tower Health’s turnaround has been remarkable, but I understand there is still work to do to achieve our long-term goals,” Stern said. “I’m grateful to the staff members and stakeholders who continue to believe in Tower Health, and the patients and their families who trust our team to provide high-quality care. I believe the best is yet to come as we continue to align our system, implement leading-edge services, and focus on meeting the robust healthcare needs of our community.”
